TUCSON, Ariz. – A Davis-Monthan Air Force Base staff sergeant and his husband are facing federal charges after authorities allege they defrauded the U.S. Department of War out of more than $11 million. The scheme, prosecutors say, involved the fraudulent purchase and resale of medical devices, with the illicit proceeds used to fund a lavish lifestyle that included a million-dollar home and luxury vehicles.
Staff Sgt. Richard Ramroop, 35 and Manuel Madrid, 32, are accused of conspiracy to commit theft of government property, conspiracy to commit wire fraud, wire fraud, and money laundering. The indictment details how the couple allegedly used the funds to purchase a residence in Tucson in February 2024 for $1,000,000, a 2024 Porsche Cayenne Sport Utility Vehicle for $141,443.34, and a BMW i7 Sport Utility Vehicle for $195,397.59.
According to the U.S. Attorney’s Office for the District of Arizona, the fraudulent activity spanned from 2022 through 2025. Bank accounts controlled by Ramroop and Madrid allegedly received over $11 million through wire transfers and Automated Clearing House (ACH) deposits from companies involved in reselling medical test strips and devices. The diverted medical devices themselves cost the Department of War over $3 million, according to court records.
“The defendants allegedly stole millions in taxpayer dollars from the U.S. Department of War to bankroll a lavish lifestyle, diverting critical resources away from their intended purpose,” said U.S. Attorney Timothy Courchaine in a statement. “Every dollar taken through fraud is a dollar denied to the mission it was meant to support. The U.S. Attorney’s Office and our federal and local law enforcement partners will hold accountable any individual who profits illegally at the expense of the American people.”
Airman Allegedly Used Position to Facilitate Scheme
Prosecutors allege that Ramroop, employed as a pharmacist at Davis-Monthan Air Force Base, exploited his position to carry out the scheme. The indictment claims he purchased thousands of medical devices using taxpayer money and then resold them for personal profit. The Department of War, which includes the Department of Defense, incurred significant losses as a result of these diverted supplies.
The investigation was led by the Internal Revenue Service Office of Criminal Investigation (IRS-CI). The IRS office in Tucson provides assistance with tax-related issues and investigates financial crimes.
Potential Penalties for the Charges
If convicted on all counts, Ramroop and Madrid face significant prison sentences. Conspiracy to Commit Theft of Government Property carries a maximum penalty of up to 5 years imprisonment. Each conviction for Conspiracy to Commit Wire Fraud and Wire Fraud carries a maximum penalty of up to 20 years imprisonment. Finally, each conviction for Money Laundering carries a maximum penalty of up to 10 years imprisonment.
The U.S. Attorney’s Office – District of Arizona, led by Timothy Courchaine, is prosecuting the case. The office comprises approximately 180 assistant U.S. Attorneys and 160 support staff across locations in Phoenix, Tucson, Yuma, and Flagstaff.
The case is ongoing, and the next steps involve court proceedings and potential trial dates. Authorities have not yet released details regarding asset forfeiture or the recovery of the funds allegedly obtained through the fraudulent scheme. Further updates will be provided as they turn into available.
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